Thickened quarterly net profit

“My hometown is in Henan. This year in response to the “local Chinese New Year” initiative to stay in Jiaxing. During the Spring Festival, the company gave all our employees three times the salary, and also issued 800 yuan subsidies, 1,000 yuan shopping cards, Spring Festival red envelopes, New Year red envelopes and so on. We miss home a little, but we are happy with the money we make.” Xiao Li, an employee of Zhongli Synthetic Materials who is busy on the production line, told China Securities Journal.

“Local Chinese New Year” allows left-behind employees to get benefits, and is also expected to significantly thicken the net profit of related enterprises in the first quarter.

Zhongtai Securities pointed out that from past experience, the shutdown cycle of the Spring Festival holiday lasts about 20 days. From the 15 days before New Year’s Eve, the average daily coal consumption of China’s six major power generation groups will enter the downward channel until the tenth day of the first month to return to normal levels. From the perspective of the employment structure of migrant workers, the Spring Festival returning home has the greatest impact on the production of industrial construction and manufacturing.

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“On the one hand, ‘Spring Festival in place’ will help enterprises save a lot of recruitment costs, and on the other hand, it will significantly increase the effective production time of enterprises.” “The first quarter of this year is expected to be very bright for manufacturing companies,” said Yang Ruiwen, fund manager at Invesco Great Wall.

For manufacturing companies that employ a large number of workers, concentrated recruitment after the Spring Festival is usually a big expense. In Lens Technology, for example, the company announced a recruitment notice on the sixth day of the first month, the internal staff recommendation bonus from 5,000 yuan to 10,000 yuan, self-entry and self-return employees will be rewarded with 5,000 yuan, and the bus fare subsidy ranging from 100 yuan to 500 yuan for employees inside and outside the province.

“In addition to one-time expenses such as recommendation incentives and induction incentives, induction training is also an expense, and there is a skilled process after taking the job, and the recruitment cost of each worker is about 10,000 yuan.” The significant increase in the return rate allowed us to save a lot of expenses, which of course added to the net profit in the first quarter.” A person in charge of a consumer electronics company told China Securities Journal.

Zhongtai Securities pointed out that in the context of promoting the “local New Year”, the recovery rate of production capacity is faster than in previous years. The superimposed export market share continues to remain high, foreign trade enterprises have full orders, and the rapid recovery of production capacity has a positive impact on the production end.

The China Securities Journal reporter learned during the investigation of Lege shares that the “local New Year” enables enterprises to resume work and production faster than in previous years. “In previous years, affected by the Spring Festival factor, the delivery of orders will be delayed by about 15 days. This year, we were only delayed by seven days, and we were able to deliver 100 percent of the goods as promised to our customers.” Li Miao said.